If you remember the 2014 real estate market in Red Deer it was the year oil prices dropped impacting our economy and employment.
Oil prices started decreasing in June 2014 and it directly affected the Alberta real estate market. It slowed both sales and prices. Through the years following 2014 other variables also impacted our local market but 2020 was the year we started to see a difference.
The last seven months of 2020 showed higher sales than the same months in 2019 and at that point, we definitely considered it a trend. Through the last 7 months of 2020 sales ranged 7%-33% higher and so far in 2021, the increases range between 39%-454%.
That’s right… sales in April 2021 were 454% higher than they were in April 2020.
How did this happen? Home sales in Red Deer were high this last month but the reason the difference is so high is that April 2020 was the first month impacted by COVID-19. With nobody knowing the impact COVID-19 would have, the buyer-market practically came to a halt in Red Deer.
To give you an idea of the degree to which sales slowed in April 2020 we can compare it to 2019. 2019 home sales in Red Deer were the lowest they’ve been in the last 15 years and April 2020 had 61% fewer homes sell than April 2019. In April 2020, 96 single-family detached homes sold in Red Deer, and in April 2021 the number was only 37.
Considering all this, take the 454% higher sales with a grain of salt. However, April sales were 3.7% higher this year than they were in April 2014 and therefore the highest April sales we’ve they’ve seen this decade!
Note: The highest sales month this decade was May 2014 and last month (April 2021) is now be the second highest. Can May 2021 sales numbers beat May 2014’s decade record? With the current activity levels, it’s possible but low inventory levels might not allow it. Tune in at the start of June to see.